In the wake of the worst housing crash and credit crisis the U.S. has seen since the Great Depression, homebuilders are struggling to get banks to lend them the money they need to conduct business. As a result, most builders are being forced to hold off on new constructions until they have a buyer lined up who can provide an approved mortgage application. As builders continue to encounter problems with receiving funding from financial institutions, the number of new home constructions will continue to decline. With fewer homes being built, many experts in the housing industry are becoming concerned about a very realistic threat – a housing shortage.
Not enough houses to meet the demand in 2011? Is that possible? Experts from CNNMoney.com think so! A recent article published by CNNMoney.com reports that the nation is not building enough houses to keep up with the possible demand of the coming year. As the U.S. economy begins to recover and more jobs are created, industry experts predict the consumer demand for new homes will likely increase as well. In April, only 672,000 new constructions were started – which is less than half of the 1.5 million houses a year that must be built in order to keep up with the U.S. population growth. Studies predict that this is enough to sustain the housing market for approximately 7 months. Is the thought of a housing shortage a realistic threat? Sources are saying Yes! Read more about this topic here: Housing Shortage in 2011